Which of the following statements is FALSE?
A) Put-call parity gives the price of a European call option in terms of the price of a European put, the underlying stock, and a zero-coupon bond.
B) For a given strike price, the value of a call option is higher if the current price of the stock is higher, as there is a greater likelihood the option will end up in-the-money.
C) The value of an otherwise identical call option is higher if the strike price the holder must pay to buy the stock is higher.
D) Because a put is the right to sell the stock, puts with a lower strike price are less valuable.
Answer: C
You might also like to view...
If a special pricing order is accepted for 5500 sails at a sales price of $150 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.)
Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production:
A) Operating income decreases by $825,000.
B) Operating income increases by $825,000.
C) Operating income decreases by $495,000.
D) Operating income increases by $495,000.
Equitable remedies such as issuing injunctions and granting fictional seniority can be granted, at
the discretion of the court, to a successful plaintiff in a Title VII action. Indicate whether the statement is true or false
Whenever a power relationship in the workplace is combined with a private sexual relationship, a tacit implication of ________ enters the scenario
a. racial discrimination b. physical abuse c. sexual harassment d. quid pro quo harassment
The Explanation of Services is a document prepared for the customer that describes what the project will deliver and outlines generally at a high level all work required to complete the project
Indicate whether the statement is true or false